CC 03-30-1998 - Laserfiche WebLink

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ARDEN HILLS CITY COUNCIL - MARCH 30. 1998 21 . Mr. Post stated the City does not have a cafeteria program and commented on the difficulty of finding a provider that would support the employee "opting out" option since they do expect 100% participation, Councilmember Aplikowski suggested the Council set a maximum contribution and allow employees to use it, in some fashion, for health benefits without the alternative of getting the funds as taxable income. Councilmember Malone stated he supports providing a fair package to both married and unmarried employees and proceeding in the direction being suggested. Councilmember Hicks asked if the life insurance policy builds cash value. Mr. Post stated that it does not and is strictly term insurance. Councilmember Hicks stated if they have sufficient life insurance coverage they are still gaining comparable benefits. Councilmember Aplikowski noted it is families that need the extra coverage as opposed to singles but the program needs to be fair to all. Mayor Probst stated if the single coverage cost is $160 and family coverage is beyond what is being paid then the single coverage employee can designate the remainder of the contribution towards life insurance coverage. _ In response to Councilmember I-licks, Mr. Post stated there are eight single family coverage employees, six family coverage employees, and one COBRA retired employee. He noted that staff needs Council direction to calculate employee deductions for the April pay checks. Councilmember Malone stated he believes it was agreed that the contribution was not to exceed $320. Councilmember Aplikowski stated she supports offering the ability to the employee to use the $320 contribution as they see fit for health and dental insurance coverage. She suggested that amount be considered with the issue further discussed at an upcoming meeting. Mr. Post advised that the $320 level of contribution is the same as with other bargaining units. Mayor Probst stated he supports making the net benefit to employees equivalent whether single or married. Councilmember Malone stated his concurrence and noted that with a cafeteria plan the ability exists to deduct a portion of your salary for child care and other qualified expenses but, if it is not used, it is lost at the end of the year. Mr. Probst stated the intent is not to pay taxes on that portion of the wage. Council consensus was reached to direct staff to proceed with $320 as the available contribution and direct staff to research the options to equalize the benefit package for single and married employees. .